of fertilizer, feed, and seed; and the handling, storage, and distribution of all grains before export or processing.

The Service also provides services relating to expansion of productive capacity, materials, and facilities under the Defense Production Act of 1950, as amended (50 U.S.C. 2061); plans for management, control, and allocation of water to be used for agricultural production and food processing; consolidates all claims for material, labor, equipment, supplies, and services needed to support the defense responsibilities of USDA; and guarantees payments or makes loans, as needed, for the continuation of food and agriculture activities in a national defense emergency.

Accounting and budget support is provided by the Service for the General Sales Manager of the Foreign Agricultural Service in administering Commodity Credit Corporation export credit sales and guarantee programs and Food for Peace programs.

To carry out the Agricultural Foreign Investment Disclosure Act of 1978 (7 U.S.C. 3501), the Department assigned the Service the primary responsibility of collecting information through a reporting system involving all States and most counties. The agency assesses penalties on late filed information and refusals to file. The Administrator rules on appeals resulting from penalties assessed for violations of the act.

Resource Conservation Programs The Conservation Reserve Program, authorized by the Food Security Act of 1985, conserves and improves soil and water resources on highly erodible cropland. The program participant establishes and maintains a cover of grass or trees, implements a conservation plan, reduces the acreage bases, allotments, and quotas for the 10-year contract period, and does not allow grazing or harvesting on the land.

The Agricultural Conservation Program provides cost-sharing of up to 80 percent with farmers to carry out needed conservation and environmental measures under annual and long-term agreements. The emphases of the program are to meet some of the more

pressing farm-related conservation and environmental problems; to practice long-range preservation of the environment, which will provide substantial benefits to the public at the least possible cost; and to increase forest production.

The Forestry Incentives Program, authorized in 1973, provides cost-sharing for tree planting and timber stand improvement with private landowners. The Federal share of these costs ranges up to 65 percent. The maximum costshare is $10,000 annually. The aims of the program are to increase production of timber and to improve the

environment.

The Water Bank Program, authorized in 1970, provides that persons having eligible wetlands in important migratory waterfowl nesting, breeding, and feeding areas could enter into 10-year agreements and receive annual payments for preventing the serious loss of wetlands and for preserving, restoring, and improving inland fresh water and designated adjacent areas.

The experimental Rural Clean Water Program, authorized in agricultural appropriations legislation for 1980 (93 Stat. 821) and 1981 (94 Stat. 3095), provides cost-sharing and technical assistance for installing measures that control nonpoint source pollution and improve water quality in rural America. The Federal cost-share level for project areas is not to exceed 75 percent unless waived. The participants enter into longterm (3 to 10 years) contracts with the Government.

For further information, contact the Information Division, Agricultural Stabilization and Conservation Service, Department of Agriculture, P.O. Box 2415, Washington, DC 20013. Phone, 202-447-5237.

Commodity Credit Corporation The Commodity Credit Corporation was organized October 17, 1933, pursuant to Executive Order 6340 of October 16, 1933, under the laws of the State of Delaware, as an agency of the United States. From October 17, 1933, to July 1, 1939, the Corporation was managed and operated in close affiliation with the

Reconstruction Finance Corporation. On July 1, 1939, the agency was transferred to the Department of Agriculture by the President's Reorganization Plan No. I of 1939 (5 U.S.C. app.). Approval of the Commodity Credit Corporation Charter Act on June 29, 1948 (15 U.S.C. 714), subsequently amended, established the Corporation, effective July 1, 1948, as an agency and instrumentality of the United States under a permanent Federal charter.

The Corporation stabilizes, supports, and protects farm income and prices, assists in maintaining balanced and adequate supplies of agricultural commodities and their products, and facilitates the orderly distribution of commodities.

The Corporation is managed by a Board of Directors, subject to the general supervision and direction of the Secretary of Agriculture, who is an ex officio Director and Chairman of the Board. The Board consists of seven members (in addition to the Secretary of Agriculture), who are appointed by the President of the United States.

The Corporation is capitalized at $100 million and has statutory authority to borrow up to $30 billion from the U.S. Treasury. It utilizes the personnel and facilities of the Agricultural Stabilization and Conservation Service and, in certain foreign assistance operations, the Foreign Agricultural Service to carry out its activities.

A commodity office in Kansas City, MO, has specific responsibilities for the acquisition, handling, storage, and disposal of commodities and products held by the Corporation. Commodity Stabilization Loan, purchase, and/or payment programs of the Corporation are administered by the Service for wheat, corn, upland and extra-long staple cotton, peanuts, rice, tobacco, milk, wool, mohair, honey, barley, oats, grain sorghum, rye, soybeans, sugarbeets, and sugarcane. Commodities acquired under the stabilization program are disposed of through domestic and export sales, transfers to other Government agencies, and donations for domestic and foreign welfare use. The Corporation also is

authorized to exchange surplus agricultural commodities it has acquired by the Corporation for strategic and other materials and services produced abroad.

Foreign Assistance Under Public Law 480, the Agricultural Trade Development and Assistance Act of 1954, as amended (7 U.S.C. 1691), the Corporation carries out assigned foreign assistance activities, such as guaranteeing the credit sale of U.S. agricultural commodities abroad. Major emphasis is also being directed toward meeting the needs of developing nations under the Food for Peace Act of 1966 (7 U.S.C. 1691) that further amends the Agricultural Trade Development and Assistance Act of 1954. Under these authorities, agricultural commodities are procured and exported to combat hunger and malnutrition and to encourage economic development in the developing countries. The Corporation encourages U.S. financial institutions to provide financing to developing countries under the Export Credit Guarantee Programs. The Foreign Agricultural Service Administers the programs under titles I and II of Public Law 480 (7 U.S.C. 1701, 1721) and the Export Credit and Guarantee Programs.

For further information, contact the Information Division, Commodity Credit Corporation, Department of Agriculture, P.O. Box 2415, Washington, DC 20013. Phone, 202-447-5237. For information about Public Law 480 programs, contact the Information Division, Foreign Agricultural Service, Department of Agriculture. Phone, 202-447-3448.

Foreign Agricultural Service

The Foreign Agricultural Service is the export promotion and service agency for the Department of Agriculture. It was created in 1953 (7 CFR 1520) to stimulate overseas markets for U.S. agricultural products.

The Service fulfills its role as the promotional agency for the world's largest agricultural export business through its network of agricultural counselors, attachés, and trade officers stationed overseas and its backup team of analysts, marketing specialists, negotiators, and related specialists.

The Service maintains a worldwide agricultural intelligence and reporting system through its attaché service. This service consists of a team of about 100 U.S. professional agriculturalists posted at approximately 60 American embassies and consulates around the world. Their areas of responsibility encompass about 110 countries. They represent the Department of Agriculture and handle all matters of trade, information needs, market development, export programs, and other agricultural endeavors.

The Agricultural Trade Act of 1978 (7 U.S.C. 1761) established the diplomatic title of counselor for agricultural representatives abroad. About one-half of Service overseas office heads are now at the counselor level.

Attaché reporting includes information and data on foreign government agricultural policies, analysis of supply and demand conditions, commercial trade relationships, and market opportunities. Attachés report not only on more than 200 farm commodities but also on weather, economic factors, and related subjects affecting agriculture and agricultural trade.

In Foreign Agricultural Service/ Washington, agricultural economists and marketing specialists analyze these and other reports. This analysis is supplemented by accumulated background information and by the Crop Condition Assessment system, which analyzes Landsat satellite, weather, and other data.

The Service also has a continuing market development program to develop, service, and expand commercial export markets for U.S. agricultural products. The agency carries out programs with nonprofit commodity groups called Cooperators, trade associations, and State agriculture departments and their regional associations. It manages market opportunity referral services and organizes trade fairs and sales teams.

By virtue of the Agricultural Trade Act of 1978, the Service received authority to open at least 6 and not more than 25 agricultural trade offices overseas to develop, maintain, and expand international markets for U.S. agricultural commodities. Fifteen of these offices

have been established and are located in key markets such as West Germany, Japan, Saudi Arabia, Singapore, and Venezuela. In addition to these market development activities, other trade programs required by the Food Security Act of 1985 have been implemented. These include the Export Enhancement and the Targeted Export Assistance Programs. These programs are geared to counter foreign subsidies and unfair trade practices by maintaining or expanding overseas markets for U.S. agricultural products.

To improve access for U.S. farm products abroad, the Service's international trade policy specialists coordinate and direct USDA's responsibilities in international trade agreement programs and negotiations. They maintain an ongoing effort to reduce foreign trade barriers and practices that discourage the export of U.S. farm products.

To follow foreign governmental actions that affect the market for U.S. agricultural commodities, the Service relies on its agricultural counselors and attachés. Special offices are maintained to work with the headquarters of the European Community in Brussels, Belgium; the International Negotiations Center in Geneva, Switzerland; and the Food and Agriculture Organization of the United Nations in Rome, Italy.

In Washington, a staff of international trade specialists analyzes the trade policies and practices of foreign governments to ensure conduct in conformance with international treaty obligations. During international negotiations, the Service provides the staff and support work for U.S. agricultural representation.

The Trade Assistance and Planning Office, established in November 1988, serves agricultural exporters who need foreign market information, as well as those who believe that they have been injured by unfair trade practices. In addition, the office coordinates reports on long-term trade strategy, foreign agricultural export assistance, and market opportunities for U.S. agricultural exports.

The Service's Office of the General Sales Manager also manages agricultural functions under the Public Law 480 Program, titles I and III (7 U.S.C. 1701, 1727) (Food for Peace Program), section 416(b) of the Agricultural Act of 1949 (7 U.S.C. 1431), the Commodity Credit Corporation Export Credit Guarantee Programs, the Export Enhancement Program, and direct sales of Corporationowned surplus commodities. The Service also participates in the Public Law 480, title Il donations program administered by the Agency for International

Development (AID). Public Law 480 is aimed at long-range improvement in the economies of developing countries. The commercial programs promote commercial agricultural exports by providing credit guarantees to exporters which are used to obtain additional U.S. exports.

Title I, the concessional sales section of Public Law 480, provides for lowinterest, long-term credit to recipients of U.S. farm commodities. Payment is generally made in dollars, and proceeds from sales into commercial channels are used by the recipient country for agricultural self-help measures and general economic development. A new program recently authorized by Congress under Title I provides credit funds to financial institutions in the recipient countries. The goal of this program is to promote economic development through the private sector.

Title III permits multiyear programming and forgiveness of dollar payments, provided the recipient country undertakes specific agricultural and economic development projects for commodities delivered under title I agreements.

The title II program authorizes the donation of agricultural commodities to foreign governments, voluntary relief agencies, or intergovernmental organizations. The commodities are donated for use abroad in meeting famine or other urgent or extraordinary relief requirements, economic development, and school lunch programs in developing areas. The overall Food AID Subcommittee, which is responsible for the U.S. Food Aid Program, is

chaired by USDA. More specifically, the Agency for International Development and USDA share responsibility for the title II program.

Section 416(b) of the Agricultural Act of 1949 authorizes the Corporation to donate its commodities overseas. Certain sales and barter of the commodities are also authorized. The program functions are shared between USDA and the Agency for International Development. The Corporation has the responsibility for determining the types and quantities of products for programming and for making funds available in any fiscal year for programming and related specific expenditures. Program proposals must be approved by the appropriate interagency groups. In addition, Section 416 also is a source of funding for multiyear Food for Progress Development Programs. These programs are focused on agricultural policy changes and private-sector promotions.

The Commodity Credit Corporation Export Credit Guarantee Program (GSM102) and the Intermediate Export Credit Guarantee Program (GSM-103) encourage the development or expansion of overseas markets for U.S. agricultural commodities by providing guarantees on private financing of U.S. exports to foreign buyers purchasing on credit terms.

The foreign buyer contracts for the purchase of U.S. commodities on a deferred payment basis of 3 years or less under GSM-102, or in excess of 3 and up to 10 years under GSM-103. The foreign buyer's bank issues a letter of credit to guarantee payment to the U.S. exporter or an assignee U.S. lending institution. To receive the payment guarantee, the exporter registers the sale with CCC prior to export and pays a guarantee fee. The payment guarantee is implemented only if the foreign bank fails. to pay the exporter or the assignee U.S. lending institution.

The Corporation will consider coverage on sales of any U.S. agricultural commodity that has the potential of expanding U.S. export markets. A U.S. exporter, private foreign buyer, or foreign government may submit requests that

may result in authorized guarantee coverage.

The Export Enhancement Program is designed to allow certain U.S. commodities to compete against subsidized competition in target markets. The Service is also responsible for sales of Corporation-owned surplus commodities to private trade, foreign government, and nonprofit organizations. Direct sales may be negotiated on a case-by-case basis and on a cash or credit basis. The only criteria for financing direct sales are a 3-year maximum credit plan and the arrangement of suitable payment terms. Congress authorized the Agricultural Trade and Development Missions Program in December 1987 to coordinate trade programs and development activities in selected lessdeveloped countries. By sending missions composed of private-sector and U.S. representatives of USDA, Department of State, and the Agency for International Development, the program helps countries develop in a manner that will expand U.S. agricultural exports. To date, missions have been sent to Hong Kong, the Phillipines, Singapore, Indonesia, Mexico, Algeria, Tunisia, Kenya, and Cote d'Ivoire.

For further information, contact the Information Division, Foreign Agricultural Service, Department of Agriculture, Washington, DC 20250. Phone, 202-447-3448.

Office of International Cooperation and Development The programs of the Office of International Cooperation and Development focus on sharing

knowledge of agriculture through development assistance and cooperation with other countries.

The Office's primary activities are providing technical assistance and training in agriculture to other countries, particularly the developing world; working with international food and agricultural organizations to solve world food problems; and sponsoring scientific exchanges and research that help farmers both here at home and abroad. Many of the activities are in close collaboration with the Agency for International Development.

Also the Office is responsible for USDA efforts under the President's Caribbean Basin Initiative. The Office has worked with the Secretary's Agribusiness Promotion Council, the Agency for International Development, and others to build investment in the Caribbean Basin by U.S. companies.

Office programs in international cooperation and development benefit the U.S. economy, American agriculture, and our foreign neighbors. Information gathered in scientific exchanges and cooperative research improves America's food production and helps control insect pests and weeds that damage U.S. crops. An added benefit of these programs is that the agency's activities forge closer ties between the United States and nations of the developing and developed world, thus improving foreign relations. For further information, contact the Information Staff, Office of International Cooperation and Development, Department of Agriculture, Washington, DC 20250. Phone, 202-653-7589 or 202-653-9312.

Science and Education

Agricultural Research Service The Agricultural Research Service administers fundamental and applied research to solve problems in animal and plant protection and production; the conservation and improvement of soil, water, and air; the processing, storage, and distribution of farm products; and

human nutrition. The research applies to a wide range of goals, commodities, natural resources, fields of science, and geographic, climatic, and environmental conditions.

Research activities are carried out at 138 domestic locations, including Puerto Rico, the Virgin Islands, and in 8 foreign